Qantas may increase ticket prices and plans to expand add-on fees for its low-budget carrier, Jetstar, after reporting its lowest pre-tax profits in four years. The airline stated that higher fuel costs were a contributing factor to this decline.
The company's pre-tax underlying profit for the year to 30 June was $2.06bn. Qantas chief executive, Vanessa Hudson, indicated that the company could seek more revenue due to continued strong passenger demand, despite cost of living pressures.
Jetstar's chief executive, Stephanie Tully, told investors that the budget carrier intends to separate more services from the individual ticket price. This strategy aims to keep advertised fares lower, with a pipeline of ancillary initiatives planned. Non-seat fees, which include check-in baggage, preferred seats, cancellation rights, and meals, currently generate over $1bn of Jetstar's $6bn annual revenue, a figure expected to rise significantly.
Qantas also announced it would begin retiring its older A380 fleet in 2028, earlier than the previously planned 2032, due to expected increases in maintenance costs and disruptions. The airline is considering purchasing up to 20 additional planes from 2030 as part of its fleet renewal programme, with Airbus A350-1000s and Boeing 787 Dreamliners under consideration.